IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

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Wiley lFRS: Practicallmplementation Guide and Workbook

MULTIPLE·CHOICE QUESTIONS 1. lAS 26 deals with (a) Employers' accounting for the cost of retire– ment benefit s. (b) General-purp ose financial statements of fi– nancial reports of retirement benefit plans. (c) Only defined contribution plans and not de– fined benefit plans. (d) Only defined benefit plans and not defined contribution plans. Answer: (b) 2. In rare circumstances, when a retirement benefit plan has attributes of both defined contribution and defined benefit plans, according to lAS 26 it is deemed (a) Defined benefit plan. (b) Defined contributi on plan. (c) Neither a defined benefi t nor a defined con– tribution plan . (d) For aspects of the hybrid plan that are simi– Answer: (a) 3. In the case of a defined benefit plan, lAS 26 (a) Makes it incumbent upon the plan to obtain an actuarial valuation. (b) Does not make it incumbent upon the plan to obtain an actuarial valuation. (c) Allows the plan to estimate the present value of future benefits based on valuations done by other similar plans. (d) Allows the plan to add a percentage based on consumer price index to the previous year's valuation of actuarial valuation. Answer: (b) lar to a defined benefit plan : provisions of lAS 26 applicable to such plans are to be applied; for aspects of the hybrid plan that are similar to a defined contribution plan, provisions of lAS 26 that apply to such plans are to be applied.